Effect of Union Budget 2024-25 on India’s IP & Corporate Ecosystem

Authors : Nilanshu Shekhar, Rishabh Manocha, Akanksha Anand

The Union Budget 2024-2025 presented by the Hon’ble Finance Minister outlined a robust growth strategy for India’s “Amrit Kaal” focusing on strengthening the economy through innovation, research, and development. Honouring the Economic Survey projection of real GDP growth of 6.5%-7% in 2024-25, the budget has opened new investment opportunities and benefits for various corporations especially the Indian Startups.

MSME

A significant emphasis has been placed on bolstering the MSME sector through deregulation and enhancing India’s global e-commerce presence. It also proposes the establishment of E-Commerce Export Hubs in a Public-Private Partnership (PPP) model to facilitate MSME’s and artisans in accessing international markets.
By Credit Guarantee Scheme MSME’s can avail loans for purchase of machinery and equipment without collateral or any third-party guarantee. A separate self-financing guarantee fund will be constituted to provide each applicant with a guarantee cover up to Rs. 100 crores, subject to the borrower paying guarantee fee.

Start-ups

The abolition of angel tax for all investor classes will enhance investments into start-ups. Angel Tax is a tax imposed on Indian start-ups receiving funding from investors above fair market value. This catalyst move will further assist start-up founders in securing investments and garner confidence in various investors knowing the fact that the previous tax barrier has now been removed.
The reduction in long term capital gains tax rates from 20% to 12.50% for investments in unlisted companies is expected to deliver greater clarity and more favourable returns for investors in startups. This change is likely to result in considerable cost savings, improved IPR and encourage both growth and innovation.
Indian markets are expected to become more appealing to foreign investors following the reduction in tax rates from 40% to 35%.

Innovation & Research

Following the commitment to innovation the interim budget allocates funds for the Anusandhan National Research Fund for basic research and prototype development.
It further proposes a private sector-driven research initiative with a financing pool of ₹1 lakh crore. The survey noted that in the innovation sector, over 13,000 DPIIT-recognized start-ups in advanced technologies were reported by the end of FY24 and the number of granted patents increased 17-fold from 5,978 in FY15 to 103,057 in FY24.

Efficient business infrastructure

Furthermore, the semiconductor sector receives significant attention with allocations of ₹1,500 crores for electronic chip plants, ₹100 crores for electronic displays, and ₹900 crores for modernizing the Semi-Conductor Laboratory.
A new Integrated Technology Platform will streamline IBC processes, enhancing consistency, transparency, and timeliness. This system aims to improve oversight for all stakeholders, ultimately boosting the efficiency and effectiveness of insolvency proceedings.
Additional National Company Law Tribunals (NCLT) and Debt Recovery Tribunals (DRT) will be established. Some of the NCLT will be notified to decide cases exclusively under the Companies Act. These initiatives will speed up resolution timelines and bring back investor confidence to India’s stressed-asset market.

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Effect of Union Budget 2024-25 on India’s IP & Corporate Ecosystem

Authors : Nilanshu Shekhar, Rishabh Manocha, Akanksha Anand

MSME

A significant emphasis has been placed on bolstering the MSME sector through deregulation and enhancing India’s global e-commerce presence. It also proposes the establishment of E-Commerce Export Hubs in a Public-Private Partnership (PPP) model to facilitate MSME’s and artisans in accessing international markets.
By Credit Guarantee Scheme MSME’s can avail loans for purchase of machinery and equipment without collateral or any third-party guarantee. A separate self-financing guarantee fund will be constituted to provide each applicant with a guarantee cover up to Rs. 100 crores, subject to the borrower paying guarantee fee.

Start-ups

The abolition of angel tax for all investor classes will enhance investments into start-ups. Angel Tax is a tax imposed on Indian start-ups receiving funding from investors above fair market value. This catalyst move will further assist start-up founders in securing investments and garner confidence in various investors knowing the fact that the previous tax barrier has now been removed.
The reduction in long term capital gains tax rates from 20% to 12.50% for investments in unlisted companies is expected to deliver greater clarity and more favourable returns for investors in startups. This change is likely to result in considerable cost savings, improved IPR and encourage both growth and innovation.
Indian markets are expected to become more appealing to foreign investors following the reduction in tax rates from 40% to 35%.

Innovation & Research

Following the commitment to innovation the interim budget allocates funds for the Anusandhan National Research Fund for basic research and prototype development.
It further proposes a private sector-driven research initiative with a financing pool of ₹1 lakh crore. The survey noted that in the innovation sector, over 13,000 DPIIT-recognized start-ups in advanced technologies were reported by the end of FY24 and the number of granted patents increased 17-fold from 5,978 in FY15 to 103,057 in FY24.

Efficient business infrastructure

Furthermore, the semiconductor sector receives significant attention with allocations of ₹1,500 crores for electronic chip plants, ₹100 crores for electronic displays, and ₹900 crores for modernizing the Semi-Conductor Laboratory.
A new Integrated Technology Platform will streamline IBC processes, enhancing consistency, transparency, and timeliness. This system aims to improve oversight for all stakeholders, ultimately boosting the efficiency and effectiveness of insolvency proceedings.
Additional National Company Law Tribunals (NCLT) and Debt Recovery Tribunals (DRT) will be established. Some of the NCLT will be notified to decide cases exclusively under the Companies Act. These initiatives will speed up resolution timelines and bring back investor confidence to India’s stressed-asset market.

View All

Effect of Union Budget 2024-25 on India’s IP & Corporate Ecosystem

Authors : Nilanshu Shekhar, Rishabh Manocha, Akanksha Anand

MSME

A significant emphasis has been placed on bolstering the MSME sector through deregulation and enhancing India’s global e-commerce presence. It also proposes the establishment of E-Commerce Export Hubs in a Public-Private Partnership (PPP) model to facilitate MSME’s and artisans in accessing international markets.
By Credit Guarantee Scheme MSME’s can avail loans for purchase of machinery and equipment without collateral or any third-party guarantee. A separate self-financing guarantee fund will be constituted to provide each applicant with a guarantee cover up to Rs. 100 crores, subject to the borrower paying guarantee fee.

Start-ups

The abolition of angel tax for all investor classes will enhance investments into start-ups. Angel Tax is a tax imposed on Indian start-ups receiving funding from investors above fair market value. This catalyst move will further assist start-up founders in securing investments and garner confidence in various investors knowing the fact that the previous tax barrier has now been removed.
The reduction in long term capital gains tax rates from 20% to 12.50% for investments in unlisted companies is expected to deliver greater clarity and more favourable returns for investors in startups. This change is likely to result in considerable cost savings, improved IPR and encourage both growth and innovation.
Indian markets are expected to become more appealing to foreign investors following the reduction in tax rates from 40% to 35%.

Innovation & Research

Following the commitment to innovation the interim budget allocates funds for the Anusandhan National Research Fund for basic research and prototype development.
It further proposes a private sector-driven research initiative with a financing pool of ₹1 lakh crore. The survey noted that in the innovation sector, over 13,000 DPIIT-recognized start-ups in advanced technologies were reported by the end of FY24 and the number of granted patents increased 17-fold from 5,978 in FY15 to 103,057 in FY24.

Efficient business infrastructure

Furthermore, the semiconductor sector receives significant attention with allocations of ₹1,500 crores for electronic chip plants, ₹100 crores for electronic displays, and ₹900 crores for modernizing the Semi-Conductor Laboratory.
A new Integrated Technology Platform will streamline IBC processes, enhancing consistency, transparency, and timeliness. This system aims to improve oversight for all stakeholders, ultimately boosting the efficiency and effectiveness of insolvency proceedings.
Additional National Company Law Tribunals (NCLT) and Debt Recovery Tribunals (DRT) will be established. Some of the NCLT will be notified to decide cases exclusively under the Companies Act. These initiatives will speed up resolution timelines and bring back investor confidence to India’s stressed-asset market.

View All

Effect of Union Budget 2024-25 on India’s IP & Corporate Ecosystem

MSME

Start-ups

Innovation & Research

Efficient business infrastructure

Effect of Union Budget 2024-25 on India’s IP & Corporate Ecosystem

MSME

Start-ups

Innovation & Research

Efficient business infrastructure

Effect of Union Budget 2024-25 on India’s IP & Corporate Ecosystem

MSME

Start-ups

Innovation & Research

Efficient business infrastructure

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